Bloomberg News

European 2014 Coal Drops for Fourth Day as U.S. Exports May Rise

February 14, 2013

European coal for 2014 declined for a fourth day, the longest-running decline since Jan. 8, amid speculation that increased exports from the U.S. will make up for any disruption in supplies from Colombia.

Thermal coal for delivery next year to Amsterdam, Rotterdam or Antwerp fell 60 cents to $98.60 a metric ton as of 11:32 a.m. London time, according to broker data compiled by Bloomberg.

Workers at the Cerrejon coal mine, Colombia’s largest, went on strike on Feb. 7 to push for an 8.5 percent pay rise. While coal from Colombia covers more than 20 percent of European import demand, any impact on supply would be short-lived, according to Andrew Cosgrove, a Princeton, New Jersey-based analyst at Bloomberg Industries.

“Lost import tonnages from Colombia are likely to be replaced by increased export flows from the U.S.,” Cosgrove said in a research note today. The Cerrejon mine is owned by BHP Billiton Ltd., Xstrata Plc and Anglo American Plc.

Bloomberg tracks broker data from ICAP Plc, GFI Group Inc., Marex Spectron Group Ltd., Credit Suisse Group AG, IHS McCloskey, Tradition Financial Services and Tullett Prebon Plc.

To contact the reporter on this story: Marek Strzelecki in Warsaw at mstrzelecki1@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net


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